I returned back to vc after 9 years. I’ve learned a lot. Here’s what 2019 has taught me while at
@NEA
.
1/ Competition is fiercer than ever for ‘quality’ startups. Everything is pre-empted. I’m being more aggressive in what I have conviction in before others move.
Sharing my reflections on personal growth
@Airbnb
. "Being patient with others, understanding your own emotions, and identifying what your colleagues might be going through is the key to surviving hypergrowth."
Thoughts on marketplaces dynamics after my six years at Airbnb. "Marketplace businesses can be messy, and every gain is hard earned."
Four Questions Every Marketplace Startup Should Be Able to Answer:
5/ Good people are good to work with and unscrupulous people are not. Plan and simple. I’m focused on working with individuals I want to spend time with and I hope the entrepreneurs I meet are doing the same. Ultimately vc is a people business. This lesson is learned everyday.
Just wrote "Don’t Let a Single Metric Drive Your Business" published by
@HarvardBiz
. Startups need a constellation of metrics: quantity, quality and efficient to prioritize tradeoffs and navigate in turbulent times.
I’m finding that revenue is a lagging indicator for many early stage startups. I’m much more interested in the unit economics working, or a path towards working, before trying to rapidly scale revenue.
2/ Consumer opportunities are more challenged due to increasing CAC from the Facebook + Google duopoly. Even startups that worked a few years ago have slowing growth due to increasing acquisition spend. I’m looking for multiple growth channels –the mix will constantly change.
I worked side by side with
@brian_armstrong
at
@Airbnb
before
@coinbase
. I asked him how I could buy
#BTC
. He said it was hard but that he was working on solving it... so instead I angel invested in
@coinbase
which was ironically easier at the time 😂. Thx Brian and congrats! 🚀
4/ Everyone is anticipating a slowdown but no one is acting that way. I’m staying focused on enduring businesses that will compound over time. Capital efficient businesses are a surefire way to continue when capital is scarcer. No one can predict the marco markets.
Boom.
@NEA
announced our new $3.6b fund. Investing in founders who are creating vital change in the world for over 40+ years in both up and down economic cycles!
When I joined
@Airbnb
in 2011, I thought, if this works it could be huge (like a billion dollar co). I never thought it could be worth +100 billion but I shouldn't be surprised. Such an amazing team who is dedicating themselves to bringing people together in the world.
3/ Application layer software in on fire. With
@zoom_us
's successful IPO, it feels like SaaS multiples have doubled since the beginning of 2019. I’m leaning forward when the business gets stronger at scale (ex: potential to become a platform), not otherwise.
There are a ton of Airbnb alum startups that are just getting going.
@coinbase
and
@mesosphere
are two unicorns that have already emerged from
@Airbnb
.
@andrewchen
I’ll argue that there will be more from Airbnb than Uber in the next few years.
With my experience as the first PM
@Airbnb
, founders often ask me what to look for in their first PM hire. My reply is always hire builders not maintainers.
Just published a piece in
@TechCrunch
on behavior changing products. "A behavior shift allows the innovator to shape the future by creating a new product experience and pricing structure." Looking forward to what's to come!
"
@Patreon
's creators want to express themselves while earning a living. The platform gives control to the creator, allowing them to know and manage their fanbase in a scalable way."
@NEA
is co-leading the 90M fundraise. More here 👇
It’s way better for a marketplace to be supply constrained than demand constrained. Lack of demand is the main cause of any business failure either as a startup or any business for that matter.
Attended an
@atrium
scale event hosted by
@justinkan
over the holiday weekend. Super impressed with the caliber of the startups in the Atrium ecosystem!
I get told all the time that 'ideas are a dime a dozen its all about the execution'. My take is that it is all about execution but a really good idea is hard to identify. You need both a solid team and a great idea (as well as market timing) to get something explosive.
Don't get bamboozled by titles at large tech companies. Building anything is much harder than being handed a large part of the product where you just keep it running.
"Each stage of the company required an up-leveling of my emotional, communication, and leadership abilities — and those are the tools that I will carry forward." Its a life-long endeavor for me to continually improve!
Just published How to Make Your First Product Hire. "My advice is to find a builder, not a maintainer. Look for a PM who has actually built a new product, not someone who was handed a well-established product to manage."
@andykonwinski
I call it storytelling. You need to bring everyone along and developing a compelling narrative is the most important skillset I look for in founders.
Our interview with
@GrantLaFontaine
from
@Whatnot
on how to build a next gen marketplace with individual curators! "When you layer that star [curator] dynamic with that ability to move product, it’s a force multiplier."
Two side by side stories in
@TechCrunch
about David (my brother) raising 90M for
@BoweryFarming
and my thoughts on behavior changing products. Love the timing of it!
I continue to be wildly excited about marketplace startups at
@NEA
! Great insights from my partner
@annbordetsky
. More in NEA's Marketplace Building Playbook 👉
Data on when 30+ startups hired their first product manager
Including who they hired, how many employees, and engineers, they had at the time, and the backgrounds of the first PMs and founders:
Original tweets back in early 2007. I was still trying to figure out what twitter would be used for. Finally stepping back into the community after an 11 year hiatus!
Hypothesis - if we appropriately tax carbon emissions, we’d see a re-emergence of onshoring, bringing jobs back to domestic markets and having food sourced more locally. Odd how a strong climate policy might correct both environmental and economic dislocations at the same time...
Business model innovation is the most disruptive type. An incumbent must change every aspect of their business including product and sales to effectively respond to the threat. Libra is Facebook’s recent attempt to own a new paradigm. It will be fascinating to see how it unfolds!
This a a topic I’ve been wanting to write about since my very first post. Being good at performance reviews is a secret weapon of great managers. I was super fortunate to get to work with the First Round Review team in this, who helped make this look 🙌. Hope you enjoy it.
It's been less than a year since ChatGPT erupted onto the scene, revealing a powerful new era in AI. The New Consumer Internet will be Collaborative (
@midjourney
,
@canofsoup_inc
), Curated (
@perplexity_ai
) and Creative (
@RewindAI
)! 👉
As a guest on TechCrunch's Equity Podcast this week,
@Cookie
,
@KateClarkTweets
,
@alex
and I discussed female-founded companies and increasing diversity within the venture industry. 👇
@bchesky
@nathanblec
@jgebbia
set a culture of entrepreneurship and that was a hiring criteria for a while. It was nicknamed being a ‘cereal entrepreneur’, a homage to them making Obama O’s cereal to fund
@Airbnb
in the early days. We’ll see more Airbnb entrepreneurs emerge soon.
I have been waiting for
@LedgeFinance
's product to exist since the early days of
@Airbnb
!
@T_Kirschen
and team could not be a better team to build "the" payments reconciliation platform:
Novel ‘system of intelligence’ products that leverage generative AI will become the next wave of software disrupters at the app layer. Defined by 1. deep workflow integration, 2. data hierarchy sophistication and 3. data feedback loops.
@TechCrunch
👉
We're thrilled to announce the support of
@NEA
& continued support of
@a16z
,
@tonsing
, and
@BessemerVP
in our mission to help people live a lifestyle that's richer in travel, experiences, and human connection.
Thanks
@bayareawriter
for the coverage!
Yale endowment is over-weight VC and dramatically under-weight domestic equity. Super interesting to peer behind one of the best allocator of assets in the world.
@MoonPayHQ
Pumped to be part of the journey with
@isotowright
and the rest of the
@MoonPayHQ
team! MoonPay is 'the' on-ramp to access crypto in the new Web3 paradigm. Exciting times ahead!
I remember seeing the Twitter's Series B pitch deck in early 2008. The entire deck was a series of tweets, amazing to see the focus on product back then which translated into an amazing narrative for fundraising. Only 140 characters on each slide.
"There is an inherent trade-off between inclusion and efficiency as a startup scales" -
@rousseaukazi
. Rousseau is trying to flip the equation.
@threads
is focused on scaling communication so that all participants are included in decisions!
There are over 300,000 privately owned aircraft in the U.S., but these planes are utilized a meager 1.2% of the time. There are more than 220,000 commercially certified pilots in the U.S., and want to fly more to earn income—it’s also their passion.
Heard on the South Park lawn in SF this am “Venture is the highest ego to AUM (assets under management) ratio in the finance industry”.
@itaitsi
Too funny :)
Loved hearing
@daynagrayson
on
@twentyminutevc
this morning with
@HarryStebbings
. Some serious knowledge dropped on how entrepreneurial expectations of venture has changed and why we place to much emphasis on "signalling". Great episode!
Love the quote by
@Zat_Rana
"You have to be lucky to be successful, but luck can be engineered." Its not just hard work but hard work in the right direction to set yourself up for serendipitous opportunities.
Extremely relevant in venture capital and just life in general. "Every time you have a conversation, you are building a personal brand" by
@JoelCPeterson
"The fact that people have left the company to implement their own big ideas isn’t a bug. It’s a feature, a direct result of the entrepreneurial culture that’s helped Airbnb thrive and have an outsize influence on the industry" Current alum include
@coinbase
and
@mesosphere
!
"Crime in SF is down 20%" ?? This is very misleading.
Homicides are up 42%. Shootings up 32%.
Majority of the "crime drop" is driven by the decrease in tourist car burglaries.
Did anyone at
@FastCompany
check the (publicly available) data? cc
@kristindakota
🧵👇 (1/x)
@ataussig
Its also important to understand the tax consequences of joining a startup. No MBA program I know of teaches you the complexity of QSBS, 83B elections, AMT or 409A valuations.
I’m speaking at The Marketplace Conference 3/27 in San Francisco. The conference is for marketplace founders, executives, and VCs/investors. Discount code "autotechfriend" gets 10% off. See you there:
Just dug this up: My chat with
@Nasdaq
from the Marketplace Conference last month. My key take-aways on managed marketplaces, demand versus supply and what sectors can be transformed through marketplaces!
I fear that to live and work in SF, salaries are going to be move up tremendously while equity compensation will become less important resulting in more tech workers seeking stability rather than joining the next rocket ship.
“According to CBRE, a real-estate firm, it costs $62.4m a year to run a 500-person startup with 7,000 square metres of office in San Francisco”.
Lulz. We pay ~$0.5m for 150 employees in Jerusalem.
Basically rent free.
Excited to partner with the
@Courtyard_NFT
team,
@lejeunedall
and
@niluaq
, to bring physical collectibles to the blockchain! More about our investment here:
Excited to announce we've raised 62.7M$ at 1.04B$ valuation, led by Daniel Gross, along with Stan Druckenmiller, NVIDIA, Jeff Bezos, Tobi Lutke, Garry Tan, Andrej Karpathy, Dylan Field, Elad Gil, Nat Friedman, IVP, NEA, Jakob Uszkoreit, Naval Ravikant, Brad Gerstner, and Lip-Bu
Interesting to see that ‘product market fit’ (actually sustainable) has finally hit the same visibility in the startup ecosystem as ‘growth hacking’ in the US.
Super interesting fact that
@steveselzer
uncovered exploring Airbnb for Work is that business travelers are commonly lonely and want a unique experience to make travel more human.
“Airbnb for Work is more than just business travel.” It’s team-building, offsites, relocation, and more. It’s designed to help companies attract and retain talent. It’s a professional community.
Excited and proud to see this coming to life.
#A4W
@Airbnb
.
@ToastTab
seems to be crushing curbside restaurant pickup. Just downloaded the app and its great. It's a stealth consumer play. This was the original
@square
Wallet app idea which was discounted in 2014.
I just published a new post synthesizing everything I’ve learned about getting into product management ✨
Seven years ago I moved from engineering to PM and this is what I wish I had known back then 🤗
@AmitMukherjee
I’m clearly biased but
@Airbnb
as the founders hired based on being a ‘cereal’ entrepreneur. You’ve already seen mega successful alums like
@coinbase
and
@D2iQ
. More to come.
gm.
Web3 introduced digital ownership to the internet, opening the floodgates for creators to capture the value they create.
Today, we’re excited to unveil Bonfire, a platform that unlocks the power of ownership for online communities.
Could not be more excited to see what the future holds for
@Patreon
! It is the platform for online creatives to engage with their fans in a meaningful way while earning a living.
Three things:
1) Creators have earned over $2B on Patreon to date from over 6M patrons!
2) Creators are about to be earning $1B per year on Patreon (!!!!).
3) We just raised $90M! Coming up: international, patron experience, discovery
More info:
Excited for this new partnership with
@andrewchen
, and grateful to our amazing community of Hosts and Hipcampers for making this possible. Let's get more people outside!! ⛺️✌🏽🌲
It’s official. Great milestone for
@fundingcircle
. Honored to have had a chance to take part in the listing celebration! Thanks to everyone who made this happen.
Don’t know how I missed this the other week but amazing career advice. “It’s important to move towards a career that has a compounding effect—most careers progress fairly linearly.”
How To Be Successful - Sam Altman
@sama
Toshi is now a part of the
@coinbase
product family, check out
@CoinbaseWallet
and ! We're so excited not just bc of a new name, but bc of the amazing team we're forming led by
@Sid_Coelho
and
@petejkim
and the many exciting features we have on our roadmap!
@bmrothenberg
Metrics show if a product is successful or not. The key is to set those metrics up beforehand versus deciding which metrics to track afterwards and then pretending the launch was successful.
Can’t wait to see dedicated micro-mobility lanes in every major city so that we can actually get around! Electric Scooters in New York City? They Just Might Work via
@nytimes
@AbhayVenkatesh1
Have the humility to understand the randomness of both good and bad fortune but the also have the doggedness to keep at it to expose yourself to even more positive serendipitous events.